Local bodies borrow more

Press, 27 August 1977, Page 5

Local bodies borrow more

PA Wellington Loans raised by local authorities reached a new peak of S23B.SM in the year to last March 31, according to the annual report of the Local Authorities Loans Board tabled in Parliament. This was $42.37M more than was raised in 1975-76 and included $30.29M raised overseas for con-tainer-port development. Loans sanctioned during the year for new works amounted to $168.1 IM and redemption loans totalled $20.21 M. Total applications for new works considered were $214.64M. The report said that in previous years the board had noted increases in loan applications for new works. However, this year the trend had reversed and applications for new works had fallen to 57 per cent of the level for 1975-76, although the number of applications considered was only marginally lower than the number considered last year.

“That the level of applications for sanctions for new works fell to that extent could be attributed to the policy adopted by the board to restrain the demand placed on materials and finance,” said the report. Local authorities themselves had also contributed by exercising their own restraint. The report said that sanctions for new works had decreased by 43 per cent to the lowest level in dollar terms since 1972-73. “The general determination restricting loan-rais-ing introduced in February 1976 was twice extended during the year and specific approvals pursuant to this determination were issued to the value of $77.6M authorising loanraising for projects not committed in Feburary 1976,” said the report. Interest rates were increased during the year to more competitive levels to increase the proportion of finance available to local authorities,